The Analytical Overview of the Main Currency Pairs on 2017.12.07

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.18258

Open: 1.17939

% chg. over the last day: -0.19

Day's range: 1.17867 – 1.18088

52 wk range: 1.0341 – 1.2069

On the EUR/USD currency pair, the bearish sentiment still prevails. Demand for the American currency is still high. Preliminary statistics on the labor market from ADP was quite optimistic. We do not exclude the further drop in the EUR/USD quotes. The trading instrument found support at the level of 1.17850. The mark 1.18200 is already a "mirror" resistance. Positions should be opened if the price fixes above/below these levels.

The news feed on 2017.12.07:

- The Eurozone GDP statistics at 12:00 (GMT+2:00);

- The number of initial jobless claims in the US at 15:30 (GMT+2:00).

We also recommend paying attention to the speech by the ECB head Draghi.

The signals of the indicators are different. The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is located in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which signals the purchase of EUR/USD.

Trading recommendations

Support levels: 1.17850, 1.17500

Resistance levels: 1.18200, 1.18500, 1.18850

If the price fixes below the local support of 1.17850, we recommend you to look for entry points to the market to open short positions. The target movement level is 1.17500-1.17250.

Alternative option. If the EUR/USD quotes overcome the "mirror" resistance of 1.18200, it is necessary to consider purchases. The movement is tending to 1.18500-1.18850.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.34430

Open: 1.33881

% chg. over the last day: -0.38

Day's range: 1.33647 – 1.33978

52 wk range: 1.1450 – 1.3618

Since the beginning of this week, GBP/USD has been showing negative dynamics. Uncertainty about Brexit continues to put pressure on the pound. At the moment, the technical pattern is ambiguous. The trading instrument is consolidating in the range of 1.33650-1.34000. Investors expect additional drivers. We recommend paying attention to the news feed from the USA.

The publication of important statistics on the UK economy is not planned.

The indicators do not send accurate signals. The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which signals the purchase of GBP/USD.

Trading recommendations

Support levels: 1.33650, 1.33000

Resistance levels: 1.34000, 1.34350, 1.35000

If the price fixes below 1.33650, we recommend considering sales of GBP/USD. The movement is tending to the round level of 1.33000.

Alternative option. If the price fixes above the resistance level of 1.34000, it is necessary to search for entry points to the market to open long positions. The movement is tending to 1.34350-1.34500.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.26865

Open: 1.27879

% chg. over the last day: +0.79

Day's range: 1.27851 – 1.28341

52 wk range: 1.2059 – 1.3795

The Bank of Canada, as expected, left the key interest rate unchanged at 1.00%. The regulator took a cautious position. In the near future, the Central Bank will adhere to the current policy of monetary policy. These events significantly hit the Canadian dollar. The growth of the USD/CAD quotations exceeded 150 points. At the moment, the key trading range is 1.28000-1.28350. The further growth of the USD/CAD currency pair is not excluded.

At 17:00 (GMT+2:00) the index of business activity of Canada from Ivey will be published.

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is located in the positive zone and above the signal line, which also signals the purchase of USD/CAD.

Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.28000, 1.27600

Resistance levels: 1.28350, 1.28600, 1.29000

If the price fixes above 1.28350, further growth of the USD/CAD quotes is expected. The target level of movement is 1.28600-1.29000.

Alternative option. If the price fixes below the round level of 1.28000, we recommend looking for entry points to the market for opening short positions. The closest target for profit taking is the 1.27600 mark.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 112.583

Open: 112.239

% chg. over the last day: -0.25

Day's range: 112.218 – 112.646

52 wk range: 99.53 – 118.67

At the moment the bullish sentiment is prevailing on the USD/JPY currency pair. In the Asian trading session, the growth of quotations exceeded 40 points. The price is testing a local resistance of 112.700. The 112.350 mark is already "mirror" support. The trading instrument has the potential for further growth. We recommend paying attention to the news feed on the US economy.

The publication of important economic reports from Japan is not planned.

The indicators point to the power of buyers. The price has fixed above 50 MA and 200 MA.

The MACD histogram is in the positive zone and continues to rise, which indicates the growth of USD/JPY.

Stochastic Oscillator is located in the overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/JPY.

Trading recommendations

Support levels: 112.350, 112.000

Resistance levels: 112.700, 113.000

If the price fixes above the local resistance of 112.700, we recommend considering buying USD/JPY. The immediate goal for fixing profits is a round-level of 113.000. When tracking positions, one should use a trailing stop.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.